891456--2/26/2009--PLAINS_EXPLORATION_&_PRODUCTION

related topics

{gas, price, oil}

{loan, real, estate}

{tax, income, asset}

{operation, natural, condition}

{regulation, change, law}

{cost, contract, operation}

{acquisition, growth, future}

{capital, credit, financial}

{personnel, key, retain}

{operation, international, foreign}

{cost, regulation, environmental}

{competitive, industry, competition}

Volatile oil and gas prices could adversely affect our financial condition and results of operations. Our asset carrying values have been impaired based on oil and natural gas prices as of December 31, 2008 and they may be further impaired if oil and gas prices continue to decline. Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs, access to capital and cost of capital. The impairment of financial institutions could adversely affect us. Estimates of oil and gas reserves depend on many assumptions that may be inaccurate. Any material inaccuracies could adversely affect the quantity and value of our oil and gas reserves. If we are unable to replace the reserves that we have produced, our reserves and revenues will decline. The geographic concentration and lack of marketable characteristics of our oil reserves may have a greater effect on our ability to sell our oil production. We intend to continue to enter into derivative contracts for a portion of our crude oil and gas production, which exposes us to the risk of financial loss and may result in our making cash payments or prevent us from receiving the full benefit of increases in prices for oil and gas and which may cause volatility in our reported earnings. Our offshore operations are subject to substantial regulations and risks, which could adversely affect our ability to operate and our financial results. The majority of our oil production in California is dedicated to two customers and as a result, our credit exposure to those customers is significant. Operating hazards, natural disasters or other interruptions of our operations could result in potential liabilities, which may not be fully covered by our insurance. We may not be successful in acquiring, developing or exploring for oil and gas properties. Any prolonged, substantial reduction in the demand for oil and gas, or distribution problems in meeting this demand, could adversely affect our business. Loss of key executives and failure to attract qualified management could limit our growth and negatively impact our operations. Governmental agencies and other bodies, including those in California, might impose regulations that increase our costs and may terminate or suspend our operations. Potential regulations regarding climate change could alter the way we conduct our business. Environmental liabilities could adversely affect our financial condition. Our acquisition strategy could fail or present unanticipated problems for our business in the future, which could adversely affect our ability to make acquisitions or realize anticipated benefits of those acquisitions. Our foreign operations subject us to additional risks. Our net income could be negatively affected by stock based compensation charges. Our results of operations could be adversely affected as a result of goodwill impairments. Terrorist activities and the potential for military and other actions could adversely affect our business. Our real estate entitlement efforts are subject to regulatory approvals. Our real estate surface development efforts are greatly affected by the performance of the real estate market.

Full 10-K form ▸

891456--2/26/2009--PLAINS_EXPLORATION_&_PRODUCTION_CO